Overview
- The cabinet approved several articles of the draft on Monday and will resume deliberations Tuesday, with full cabinet clearance and a parliamentary vote still required.
- The plan redistributes post‑2019 banking losses between the state, Banque du Liban and commercial banks as a framework to unlock international support.
- Deposits up to $100,000 would be repaid in monthly or quarterly instalments over four years, while larger balances would be exchanged for tradable asset‑backed securities paying at least 2% annually with maturities of 10, 15 or 20 years.
- Commercial banks would cover 20% of payments on the securities, and small‑deposit payouts would be jointly financed with BdL, whose share would be capped at 60%.
- The bill orders an international audit of BdL within one month, requires banks to undergo asset‑quality reviews and recapitalise, permits write‑offs of certain dollarized and illicit funds, draws sharp objections from the Association of Banks, and has prompted questions about contingent state liabilities and the lack of detailed funding estimates; the finance minister says the law could return $3–4 billion a year to the system.